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National Stock Exchange (NSE) Wiki
Welcome to the National Stock Exchange (NSE) Wiki This page is all about the National Stock Exchange (NSE) India and its comparison with other major indices National Stock Exchange (NSE) National Stock Exchange Of India Ltd (NSE) is one of the leading stock exchanges in India; it was initially registered as a tax paying company in 1992 and later, owing to the request of the Indian Government, was converted into a stock exchange listing institution to ensure transparency in the Indian market. It had a diversified shareholding comprising domestic investors like LIC, GIC, IDFC and SBI and global investors like MS Strategic (Mauritius) Limited, Citigroup Strategic Holdings Mauritius Limited, Tiger Global Five Holdings and Norwest Venture Partners X FII-Mauritius. *Types of Services Offered Trading Technology ''' NSE follows the National Exchange for Automated Trading (NEAT) which is a state of the art client server based application. It has an uptime of above 99% and its latency is as low as a few milliseconds. The order taking capacity has improved from 2 orders a second in 1994 to 1, 60,000 orders a second with infinite ability to scale up at short notice on demand. The settlements have also improved from T+5 to T+2/T+1. '''Trading Schedule Pre-Open Session * Order entry and modification open: 9:00 am * Order entry and modification close: 9:08 am Regular Trading Session * Normal Market opening: 9:15 am * Normal Market closing 15:30 pm * Block deal session is held between 9:15 am and 9:50 am * The closing session is between 15:40 pm to 16:00 pm v The exchange may alter the timings by extending, reducing or advancing the trading hours for reasons deemed fit and necessary STOCK SELECTION ''' * The CNX Nifty is a well diversified 50 stock index accounting for 23 sectors of the economy. It is used for a variety of purposes such as benchmarking fund portfolios, index based derivatives and index funds. CNX Nifty is owned and managed by India Index Services and Products Ltd. (IISL). IISL is India's first specialized company focused upon the index as a core product. * The CNX Nifty Index represents about 70.14% of the free float market capitalization of the stocks listed on NSE as on March 31, 2014. * The total traded value for the last six months ending March 2014 of all index constituents is approximately 55.67% of the traded value of all stocks on the NSE. * Impact cost of the CNX Nifty for a portfolio size of Rs.50 lakhs is 0.06% for the month March 2014. * CNX Nifty is professionally maintained and is ideal for derivatives trading. '''Computation Methodology CNX Nifty is computed using free float market capitalization weighted method, wherein the level of the index reflects the total market value of all the stocks in the index relative to a particular base period. The method also takes into account constituent changes in the index and importantly corporate actions such as stock splits, rights, etc without affecting the index value. Base Date and Value The base period selected for CNX Nifty index is the close of prices on November 3, 1995, which marks the completion of one year of operations of NSE's Capital Market Segment. The base value of the index has been set at 1000 and a base capital of Rs.2.06 trillion. Criteria for the selection of a stock The criteria used will judge the effectiveness of the index and its performance. It is based on the following factors: * Liquidity (Impact Cost) * Float-Adjusted Market Capitalization * Float * Domicile * Eligible Securities * Other Variables Returns calculation v CNX Nifty reflects the return one would get if investment is made in the index portfolios. As Nifty is computed in real-time, it takes into account only the price movements. However, the price indices do not consider the return from dividend payments of index constituent stocks. Only the capital gains due to price movement are measured by the price index. In order to get a true picture of returns, the dividends received from the index constituent stocks also needs to be included in the index movement. Such an index, which includes the dividends received, is called the Total Returns Index. v The Total Returns Index is an index to reflect the returns on the index from index gain/loss plus dividend payments by constituent index stocks. ' ' Total Returns Index – Methodology Index information on the following are the prerequisites for calculation of Total Returns Index: * · Price Index close. * · Price Index returns. * · Dividend payouts in Rupees. * · Index Base capitalization on ex-dividend date Stocks Traded on NSE NIFTY PERFORMANCE Category:BrowseCategory:Types of Services offered:Category:Trading TechnologyCategory:Trading ScheduleCategory:Pre-Open Schedule